Joint-Venture Concept
The expression of American origin Joint-Venture designates an alliance form between two or more entities juridical independent with the purpose to share the business risk, investments, responsibilities and profits associated to a certain project.
Historically, Joint-Venture have been established among non competitor companies (or other organizations), generally to assure the distinct stages of the operational chain. However, it’s more often to observe Joint-Ventures among competitor companies, namely in projects related with technological development, this is due, above all to the substantial investments needed for this type of projects. The existence of complementary know-how between the companies can also be a reason for the establishment of this kind of alliances. A special highlight for the Joint-Ventures established between companies that desire to expand to international markets: in this case, the companies perform together the investments abroad, dividing among themselves the business risks.
